PLSN.TA WACC - Weighted Average Cost of Capital

The WACC of Plasson Industries Ltd (PLSN.TA) is 10.2%.

The Cost of Equity of Plasson Industries Ltd (PLSN.TA) is 12.25%.

The Cost of Debt of Plasson Industries Ltd (PLSN.TA) is 4.75%.

	Range	Selected
Cost of equity	10.30% - 14.20%	12.25%
Tax rate	23.90% - 24.80%	24.35%
Cost of debt	4.00% - 5.50%	4.75%
WACC	8.5% - 11.8%	10.2%

WACC

PLSN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.89	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	14.20%

Tax rate	23.90%	24.80%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	5.50%

After-tax WACC	8.5%	11.8%


Selected WACC	10.2%

PLSN.TA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for PLSN.TA:

cost_of_equity (12.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.89) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.